Millions of American’s lost their retirements and savings in the devastating crashes of the 1930’s and again in 2008. What do you think will happen when the economy collapses again?
Unlike the 1930’s, there will be no point standing in long lines with hat in hand to ask for your money. By the time you hear the news, your money in the bank will already be gone. All to ensure your bank is allowed to remain open and fully operational. Such a measure is in line with international efforts to address the potential risks to the financial system and broader economy of institutions perceived as “too-big-to-fail” – or maybe next time it will be “too-big-to-bail.”
How can you avoid this criminal theft and keep your money safe? You have options.
We’ve long been familiar with capital controls, such as daily limits on bank withdrawals. Add that to nine years of microscopic interest rates cannibalizing retirement savings combined with planned inflation, which some prefer to call theft. But unlike the drip-drip we’re used to, the bail-in will come upon you quickly, harshly, and with finality.
The financial system is predominantly comprised of digital money. Actual physical Dollars bills and coins only amount to $1.36 trillion. This is only a little over 10% of the $10 trillion sitting in bank accounts. And it s a tiny fraction of the $20 trillion in stocks, $38 trillion in bonds and $58 trillion in credit instruments floating around the system – and none of this includes the massive amount of ‘money’ hidden away in derivatives.
If a large percentage of people actually moved their funds into something physical and tangible, it could very quickly become a systemic problem.
As banks in the US faced a complete financial meltdown in 2008 due to nearly 24% of the assets in Money Market funds were liquidated in the course of four weeks. The ensuing liquidity crush nearly imploded the system, Congress ponied up fresh taxpayer money $800 billion and trillions since to bail-out favored banks and industries.
That tactic took on a new name: the bail-in. The easy part the laws they needed had been in place for decades. But for added cover, they passed a specific act in 2010, a 1930’s-styled, bank heist blueprint with a feel-good name. In the last 24 months, Canada, Cyprus, New Zealand, the UK, and now Germany have all implemented legislation that would allow them to first FREEZE and then SEIZE bank assets during the next crisis.
Gold in five easy lessons
1. Don’t buy it because you need to make money; buy it because you need to protect the money you already have.
2. Don’t look at price as a barrier; look at it as an incentive.
3. Don’t buy its paper pretenders; buy the real thing in the form of coins and bullion.
4. Don’t fall prey to glitzy TV ads; do your due diligence instead.
5. Don’t allow naysayers to divert your interest; allow yourself the right to protect your interests as you see fit.
Learn how others are taking necessary steps to protect their money and retirement savings with assets like gold. Spend some time at Kettle Moraine Precious Metals – not just for the columns, the stories and the historical pieces – but each for he categories across the top of this page – then once you understand WHY – then email us or phone us to learn HOW! You will sleep better at night – knowing that you have done the right thing for your family.
Kettle Moraine, Ltd.
P.O. Box 579
Litchfield Park, AZ 85340